1
MARKET RECAP at 4 pm ET
Major stock indexes ended slightly
lower as rising tensions between U.S.
and Iran dented investor sentiment,
though U.S. Vice President Mike
Pence’s decision to defer a speech on
the China policy boosted optimism
ahead of U.S.-China trade talks.
Treasuries dropped as investors
cashed in on the two-day rally. Gold
prices were buoyed by a weaker dollar.
Oil extended gains.
Coming Up - On Monday
Mexican national statistics agency is
scheduled to report consumer price
index data for the first half of June.
Inflation fell 0.3% during the first-half
of May. Also, Brazil's inflation data is
expected to be released.
International Energy Agency's
Executive Director Fatih Birol is
expected to speak at the agency's
annual conference in Dublin. Irish
Prime Minister Leo Varadkar, Green
Climate Fund executive director
Yannick Glemarec, Saint-Gobain CEO
Pierre-Andre De Chalendar and Mark
W. Menezes, Under Secretary of
Energy, United States Department of
Energy are also likely to speak.
LIVECHAT-FX WEEK AHEAD
FX Buzz analyst Jeremy Boulton
analyses G7 currencies. (0730
ET/1130 GMT) To join the
conversation, click here
KEY ECONOMIC EVENTS
National Activity Index for May 0830 -- -0.45
Dallas Fed Manufacturing Business Index for Jun 1030 -- -5.3
Events ET Poll Prior
STOCKS Close %Chng Yr-high Yr-low Chng
DJIA 26736.90 -16.27 -0.06 26951.81 21712.53
Nasdaq 8031.71 -19.63 -0.24 8176.08 6457.13
S&P 500 2950.46 -3.72 -0.13 2958.06 2443.96
Toronto 16525.43 -49.40 -0.30 16672.71 13776.88
FTSE 7407.50 -16.94 -0.23 7528.93 6599.48
Eurofirst 1515.55 -6.47 -0.43 1541.32 1308.86
Nikkei 21258.64 -204.22 -0.95 22362.92 19241.37
Hang Seng 28473.71 -76.72 -0.27 30280.12 24896.87
TREASURIES Yield Price
10-year 2.0609 -18 /32
2-year 1.7740 -3 /32
5-year 1.7988 -9 /32
30-year 2.5877 -42 /32
FOREX Last % Chng
Euro/Dollar 1.1368 0.68
Dollar/Yen 107.36 0.07
Sterling/Dollar 1.2740 0.32
Dollar/CAD 1.3207 0.14
TR/HKEX RMB 93.59 0.19
COMMODITIES ($) Price Chng % chng
Front Month Crude /barrel 57.61 0.54 0.95
Spot gold (NY/oz) 1398.93 11.15 0.80
Copper U.S. (front month/lb) 0.0271 -0.0001 -0.22
CRB Index Total Return 187.11 -0.10 -0.05
S&P 500 Price $ Chng % Chng
GAINERS
Humana Inc 270.39 11.56 4.47
Baker Hughes A GE Co 25.19 0.83 3.41
Carmax Inc 85.60 2.60 3.13
LOSERS
Carnival Corp 46.60 -2.20 -4.51
Altria Group Inc 48.00 -2.26 -4.50
Sealed Air Corp 41.73 -1.94 -4.44
KEY RESULTS
No major S&P 500 companies are scheduled to report.
A file photo of shoppers waiting to pay for purchases during the shopping season, 'El Buen Fin' (The Good Weekend), at a Sam's Club store, in the early hours of Friday, in Mexico City, Mexico, November 16. REUTERS/Henry Romero
2
On the U.S. economic calendar, the
Commerce Department, on Thursday,
is scheduled to report economy
expanded at a 3.2% annualized rate in
its third reading of first-quarter GDP
growth. Consumer spending rose
0.4% in May, following a 0.3% growth
in the month before, the Commerce
Department is likely to report on Friday.
Besides, the University of Michigan's
preliminary consumer sentiment
index for June is likely to show a
reading of 97.9. On Tuesday, data is
likely to show new home sales rose
1.8% to a seasonally adjusted annual
rate of 675,000 units in May.
Separately, the Conference Board is
expected to report consumer
confidence fell to a reading of 132 in
June from 134.1 in May. Initial jobless
claims for the week ended June 22,
scheduled to be released on Thursday,
is likely to have risen to a seasonally
adjusted 218,000.
Accenture PLC is expected to post a
rise in third-quarter revenue on
Thursday, as the consulting and
outsourcing services provider
continues to reap benefits of its
investments in digital and cloud
services. Investors be on the lookout
for forecast, company's revenue from
digital and cloud services and if the
company announces a new CEO.
Nike Inc is expected to report a rise in
fourth-quarter sales on Thursday, as it
gains a boost in its home market from
new product launches and women's
apparel. The sportswear maker, which
manufactures about 25% of its
footwear & apparel in China, may also
comment on any potential impact
Washington's proposed tariffs on
Chinese imports may have.
FedEx Corp is expected to post a fall
in fourth-quarter profit on Tuesday, hurt
by higher costs and trade uncertainty
between the U.S. and China. The
company's Ground segment recently
announced it would expand residential
delivery service to 7-days-per-week
year-round. Investors will look for
updates on the investigation into
FedEx's parcel delivery errors and the
company's financial forecast.
On Tuesday, U.S. Secretary of State
Mike Pompeo starts his week-long
Indo-Pacific trip in India. He will also
accompany President Donald Trump
to Japan for the G20 summit. Leaders
of the G20 nations are set to attend an
opening ceremony at Osaka summit on
Friday. Japanese Prime Minister
Shinzo Abe is expected to speak.
Finance and health ministers are likely
to meet in a sideline event during the
summit. All eyes will be trained on an
event on the sidelines: whether U.S.
President Donald Trump and Chinese
President Xi Jinping can resolve a
trade war that's hurting economies
around the world.
Walgreens Boots Alliance Inc is
expected to report a lower third-quarter
profit on Thursday, after what it called
its "most difficult quarter" in April.
Investors will focus on the company's
plans to tackle a competitive pharmacy
environment to gauge growth
prospects, as well as comments on
future acquisitions.
Chipmaker Micron Technology Inc is
expected to post a fall in third-quarter
revenue on Tuesday as the
semiconductor industry comes under
continued pressure due to slowing
demand. Analysts will be looking at
commentary on the effects of U.S.
blacklisting of Huawei Technologies
and the renewed trade war between
U.S. and China, which in May led to fall
in shares of memory chipmakers
including Micron and Western Digital
as well as others in the industry.
On Wednesday, General Mills Inc's
fourth-quarter sales are expected to
rise, helped by demand for its Blue
Buffalo pet products. Performance of
the cereal and yogurt segment will be
Coming Up - Week Ahead
A file photo of a customer walking out of a Walgreens pharmacy store in Austin, March 26, 2018.
REUTERS/Mohammad Khursheed
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keenly watched as they are likely to
recover after years of slumping sales.
Conagra Brands Inc is expected to
post a rise in fourth-quarter revenue on
Thursday with the rising demand in its
frozen and snacks category. The
company, which has struggled with its
Pinnacle Foods acquisition, is also
seeing an improvement in the
business, which is likely to drive sales.
Conagra has been tackling the problem
of rising input costs by hiking prices.
Whether these costs pressures have
eased or likely to continue will be on
the analysts’ radar.
Constellation Brands Inc is likely to
report lackluster first-quarter results on
Friday, hurt by poor weather and the
lack of innovation in its beer portfolio.
Profit is expected to take a hit, weighed
by the company's investments in
Canopy Growth and rising marketing
expenses.
On Wednesday, BlackBerry Ltd is
expected to report a first-quarter loss
compared with a year-ago profit due to
a rise in costs. Investors will be looking
for any commentary on additional
government contracts in the quarter as
the company looks to expand its
government solutions business.
The U.S. Federal Reserve, on
Thursday, will report its finding from its
annual stress test of large bank
operations, including whether the firms
will be able to deploy capital to
investors as planned.
U.S. Federal Reserve Board Chair
Jerome Powell is scheduled to speak
at "C. Peter McColough Series on
International Economics: A
Conversation with Jerome H. Powell" at
Council on Foreign Relations in New
York on Tuesday. On the same day,
Federal Reserve Bank of Atlanta
President Raphael Bostic is expected
to participate in a panel on "Housing"
before the Harvard University Joint
Center for Housing Studies' "The State
of the Nation's Housing 2019," in
Atlanta, Georgia. Separately, Federal
Reserve Bank of New York President
John Williams is set to give welcome
remarks before the OPEN Finance
Forum organized by OPEN Finance
NYC and Bloomberg, in New York.
Also, Federal Reserve Bank of
Richmond President Thomas Barkin is
scheduled to take part in a discussion
at the University of Ottawa's Institute of
Fiscal Studies and Democracy. Federal
Reserve Bank of St. Louis President
James Bullard is likely to give
welcome remarks before the Homer
Jones Memorial Lecture featuring
Carmen Reinhart and will also hold a
media Q&A prior to the event, in St.
Louis, Missouri.
On Friday, Statistics Canada data is
expected to show gross domestic
product in April grew 0.1%, after
increasing 0.5% in the March.
Canada’s wholesale trade data for
April is scheduled for release on
Tuesday.
Mexico's central bank will hold its
monetary policy meeting on
Thursday. Investors will be on the
lookout for comments on the future
trajectory of interest rates and risks to
inflation and economic growth.
Brazil’s jobless rate data for May is
expected to be released on Friday. It
fell to 12.5% in the month before.
A file photo of bottles of the beer, Corona, a brand of Constellation Brands Inc., sitting on a super-market shelf in Los Angeles, California April 1, 2015. REUTERS/Lucy Nicholson
4
Wall Street closed slightly lower as
U.S. Vice President Mike Pence's
decision to defer a speech on China
policy increased optimism on upcoming
trade talks between Washington and
Beijing, while tensions between the
United States and Iran undercut
sentiment. "People will be focusing on
what happens at the G20 with
Presidents Trump and Xi," said Kurt
Brunner, portfolio manager with the
Swarthmore Group in Philadelphia.
Trump said he aborted a military strike
on Iran in response to Tehran's
downing of a U.S. drone, but the
possibility of a U.S. retaliation pushed
crude prices higher and helped lift the
energy sector by 0.82%. The Dow fell
0.13%, to 26,719.2, the S&P 500 lost
0.12%, to 2,950.53 and the Nasdaq
Composite dropped 0.24%, to
8,031.71. The benchmark S&P 500
index hit an intraday record high of
2,964.15 earlier in the day. For the
week, the S&P rose 2.20%, the Dow
added 2.41%, the Nasdaq gained
3.02%.
U.S. Treasury prices fell sharply, as
investors cashed in on steep gains the
last two days that saw yields drop to
multi-year lows in the wake of a
Federal Reserve statement that
flagged interest rate cuts this year. A
few analysts believe the rally that
followed the Fed's decision and
statement on Wednesday was
overdone and now the market is
ratcheting back forecasts of three to
four rate cuts given that the U.S.
economy, while slowing, remained
solid overall. The 10-year notes fell
17/32 to a yield of 2.05%. The 2-year
notes fell 3/32 to yield 1.77% and the
30-year bonds were down 1-8/32,
yielding 2.58%.
The dollar fell against a basket of
currencies on bets the Federal Reserve
would start lowering interest rates. The
greenback's weakness propelled the
euro to rise. The single currency was
also buoyed by stronger-than-forecast
survey data on French and German
business activity. The euro gained
0.67% against the dollar at $1.1367.
The dollar index was 0.44% lower at
96.2. The dollar was up 0.03% against
the Japanese yen at 107.32 yen. The
yen earlier hit 107.045 per dollar during
Asian trading, which was its strongest
level since Jan. 3.
Oil futures rose on fears the United
States could attack Iran and disrupt
flows from the Middle East, which
provides more than a fifth of the world's
oil output. "The heightening of tensions
between the United States and Iran
has evolved as primary price motivator
in spiking oil values," Jim Ritterbusch of
Ritterbusch and Associates said in a
note. Brent futures were up 1.4%, at
$65.35 a barrel, while the U.S. crude
was up 1.02% at $57.65 per barrel.
Gold prices surpassed $1,400, still
holding near a six-year high on the
U.S. central bank's dovish stance on
monetary policy. Prices also found
support from worries about a potential
U.S. military strike against Iran and a
global trade conflict. Prices surged to
$1,410.78 in the session, a high not
seen since early September 2013.
"Gold is seeing a continuation move
from bullish comments throughout the
week, most notably the fact that world
central banks easing monetary policy is
generally very supportive for
commodities overall, particularly gold,"
said David Meger, director of metals
trading at High Ridge Futures. Spot
gold rose 0.8% to $1398.87 per ounce.
U.S. gold futures were up 0.42% at
$1402.8 per ounce.
Market Monitor
Traders work on the floor at the New York Stock Exchange in New York, June 19.
REUTERS/Brendan McDermid
5
Top News
Exxon's $53 billion Iraq deal hit by
contract snags, Iran tensions -
sources
Just weeks ago, U.S. energy giant
ExxonMobil looked poised to move
ahead with a $53 billion project to
boost Iraq's oil output at its southern
fields, a milestone in the company's
ambitions to expand in the country. But
now a combination of contractual
wrangling and security concerns,
heightened by escalating tensions
between Iraq's bigger neighbour Iran
and the United States, has conspired to
hold back a deal, according to Iraqi
government officials. The negotiations
have been stymied by terms of the
contract that Baghdad objects to, said
four Iraqi officials involved in the
discussions who spoke to Reuters on
condition of anonymity due to the
sensitivity of the matter. The main
sticking point, they said, was the
means by which Exxon proposed to
recoup its development costs, with the
company aiming to share the oil
produced by two fields - something Iraq
opposes, saying it encroaches on state
ownership of production.
Airlines avoid parts of Iran-
controlled airspace after U.S.
regulator's order
Some global airlines are re-routing
flights to avoid Iran-controlled airspace
over the Strait of Hormuz and Gulf of
Oman, they said, after the U.S. aviation
regulator barred its carriers from the
area until further notice. Thursday's
emergency order from the U.S. Federal
Aviation Administration (FAA) came
after Iran shot down a high-altitude
U.S. drone with a surface-to-air missile,
sparking concerns about a threat to the
safety of commercial airlines.
According to flight tracking
applications, the FAA said, the nearest
civil aircraft was operating within about
45 nautical miles of the unmanned
aircraft when it was shot down.
Four U.S. states join lawsuit to stop
T-Mobile-Sprint deal
Four more U.S. states joined an
unusual effort by state attorneys
general to stop T-Mobile US's
acquisition of Sprint, a New York
official said at a court hearing. Hawaii,
Massachusetts, Minnesota and Nevada
will be included in an amended
complaint being filed Friday, said Beau
Buffier, chief of the antitrust bureau in
the New York attorney general's office.
Lawyers for the states and the
companies also proposed Oct. 7 for the
start of a trial, which could last two to
three weeks. The four states join 10
state attorneys general, led by New
York and California and including the
District of Columbia. Sprint ended
6.89% percent lower at $6.89 and T-
Mobile ended 2.84% lower at $75.72.
European central bankers claim
oversight over Facebook’s
cryptocurrency
Three European central bankers are
claiming oversight over Facebook's
planned virtual currency, Libra, to
ensure it will not jeopardise the
financial system or be used to launder
money. With the potential to reach
billions of internet users and the
backing of payment giants like Visa,
Facebook hopes Libra will not only
power transactions but offer people
without bank accounts access to
financial services for the first time. But
the central bankers of Britain, France
and Germany said Facebook should
expect scrutiny. "It has to be safe, or
it's not going to happen," Bank of
England Governor Mark Carney told
the BBC in an interview broadcast.
"We, the Fed, all the major global
central banks and supervisors, would
have direct regulatory (oversight)," he
said, referring to the U.S. Federal
Reserve.
PG&E to float $31 billion
restructuring plan - Bloomberg
Power producer PG&E will propose a
$31 billion bankruptcy restructuring
plan that will include two funds worth a
total of $34 billion to cover past and
future wildfire claims, Bloomberg
A file photo of flames emerging from the flare stacks at the West Qurna-1 oilfield, which is operated by ExxonMobil, near Basra, Iraq, June 1. REUTERS/Essam Al-Sudani
6
reported. Asked by Reuters about the
plan, a PG&E spokesman said: "We
are looking at all options when it comes
to working with the governor and
legislature, and are committed to
resolving wildfire victims’ claims fairly
and expeditiously." The Bloomberg
report said there would be two funds,
one of $14 billion to cover past claims
and one of $20 billion to cover future
claims, under the plan which it said
was expected to be filed formally in
August.
U.S. Senate Democrats ask for
details on antitrust probes into Big
Tech
Seven U.S. Senate Democrats asked
the Trump administration to disclose
details of possible Federal Trade
Commission and Justice Department
antitrust investigations into
Amazon.com Inc, Facebook, Alphabet
and Apple. The senators led by
Senator Amy Klobuchar, a presidential
candidate, said in the letters to FTC
Chairman Joe Simons and Justice
Department antitrust chief Makan
Delrahim that "given the silence of the
FTC and the Justice Department, the
truth is that we still do not know if these
investigations have actually been
initiated and neither do the American
people." The FTC declined to comment
on the letter, while the Justice
Department did not immediately
comment.
UK regulator tells Facebook, eBay to
tackle sale of fake reviews
Britain's competition watchdog told
Facebook and eBay to go through their
websites and crack down on the sale of
fake and misleading online reviews.
The Competition and Markets Authority
(CMA) said it had found "troubling
evidence" of a growing marketplace for
misleading reviews on the two sites.
The CMA said it had found more than
100 eBay listings offering fake reviews
for sale between November and June,
and identified 26 Facebook groups with
people offering to write fake reviews, or
businesses recruiting people to write
them on popular shopping and review
sites. A Facebook spokeswoman told
Reuters the company had removed 24
of the groups and pages flagged by
CMA, a number of them before the
regulator's report. EBay said it was
working closely with the regulator.
Harris wins EU approval for L3 Tech
deal subject to sale of night vision
business
Military communication equipment
provider Harris has won European
Union approval for the acquisition of L3
Technologies, on the condition that
Harris sells its night vision global
business, the EU Commission said.
The all-stock merger will create the
sixth-largest United States defense
contractor, with a market value of $34
billion at the time it was announced in
October 2018. The EU antitrust
regulator found that the merger would
have reduced competition in the
European markets for image
intensification night vision devices and
image intensification tubes. Harris
offered to sell its night vision business
before completing the deal, and the
Commission accepted the remedy,
Brussels said in a statement.
U.S. group says Novartis MS drug
price out of line with benefit
A U.S. group that reviews the value of
medicines issued a critical report on
Novartis's new multiple sclerosis drug
Mayzent, calling its $88,561 list price
"far out of line" compared with its
benefits for patients. The Boston-based
Institute for Clinical and Economic
Review, which has been reviewing
Mayzent for months, recommended
that Novartis lower the drug's price.
Novartis disputed the findings. "It is
unfortunate that Novartis chose a price
that is so far out of line with
(Mayzent's) benefits to patients with
active SPMS, particularly with it
entering a crowded field of disease
modifying therapies," ICER Chief
Medical Officer David Rind said in a
statement late on Thursday.
German econmin: It's up to Huawei
to show it meets our security
requirements
Germany expects Huawei to
demonstrate it can meet its security
requirements for participating in the
building of the country's 5G network,
the economy minister Peter Altmaier
said after meeting with the company's
chief executive officer. After meeting
Huawei CEO Ren Zhengfei in
Shanghai, German Economy Minister
Peter Altmaier said: "I made it very
clear that telecommunication security is
of high importance, that we expect all
operators to fulfill our security
requirements and that it is now
Huawei's duty to show us that they are
able to do so." A spokeswoman for
Altmaier said he had also stressed that
the protection of citizens' data and
compliance with German law were key.
A file photo of the logo of Swiss drugmaker Novartis seen at its branch in Schweizerhalle near Basel, Switzerland, March 29, 2018. REUTERS/Arnd Wiegmann
7
Dashboard of a downturn: global
recession signals
As the U.S.-China trade war erodes
confidence and central banks prepare
to unleash another wave of stimulus,
investors are checking which advance
warning indicators might be forecasting
a global economic recession. A decade
after the 2008 financial crisis, one of
the most accurate predictors of U.S
recessions - inversion of the
government bond yield curve - has
kicked in. Most countries simply can't
match U.S. data for breadth. Global
recessions are also infrequent - before
2009, one would have to go back to
1990-1991 to find a period when the
world economy actually shrank.
Risks to Wall Street's rally abound
despite record high
The benchmark S&P 500 index hit a
record high on Thursday as an almost
giddy euphoria over the prospects of a
U.S. interest rate cut fueled the
appetite for equities, but there are
plenty of pitfalls that could throw the
stock market off course. From the high
expectations for something positive on
the U.S.-China trade front at next
week's Group of 20 summit, to rising
geopolitical concerns and a worrying
U.S. profit picture, the potential for
missteps and stumbles is great.
Moreover, the rally appears to be
based more on hope than reality,
strategists said.
Lords of the Ring: Can 'smart' ring
give BlackRock fund managers the
edge?
After years of using the internet,
satellites, algos and other innovations
to mine 'Big Data' for that edge over
rivals, the world's biggest investment
firm is trialling a gizmo that puts the
focus back on humans -- its own
portfolio managers. In an world where
marginal gains can translate into
millions of dollars of returns BlackRock,
which manages $6.5 trillion in assets,
is betting that healthier, happier fund
managers make smarter investment
decisions -- and wearable smart
technology can help optimise their
performance.
Dancers waltz in front of Russian armoured vehicles, including tanks T-72 B3, during a rehearsal for an exhibition event, part of the Army-2019
international military and technical forum, in Rostov Region, Russia, June 20. REUTERS/Sergey Pivovarov
Insight and Analysis
8
CANADA COMING UP- ON MONDAY Market Monitor
Top News
Canadian oil industry dismayed as
contentious energy bills become law
Two pieces of legislation opposed by
Canada's oil and gas industry that fulfil
Liberal government promises to protect
the environment will become the law.
Bill C-69, which will overhaul
environmental assessments for major
resource and transportation projects
like oil pipelines, and Bill C-48, which
bans oil tankers from British Columbia's
northern coast, were passed by the
Senate on Thursday evening. That vote
followed approval by the House of
Commons last week. The two bills are
scheduled to formally receive Royal
Assent to become law on Friday
afternoon. Prime Minister Justin
Trudeau's Liberal government is facing
a national election in October and
overhauling environmental
assessments and the oil tanker
moratorium were key promises in his
2015 election campaign. Critics
including the opposition Conservatives
and the government of Canada's main
crude-producing province Alberta say
Bill C-69 will deter investment in the
industry. "This is a sad day for Canada.
With the passage of Bill C-69, Justin
Trudeau finally has his law that will
phase out Canada's oil and gas
industry," said Conservative leader
Andrew Scheer, who pledged to repeal
the bill if his party wins the October
election. The laws drew praise from
environmental groups.
TSE's S&P/TSX composite Price C$ chng % chng
GAINERS
New Gold Inc 1.01 0.08 8.60
Eldorado Gold Corp 7.10 0.38 5.65
Ero Copper Corp 21.83 1.05 5.05
LOSERS
Canopy Growth Corp 53.28 -4.39 -7.61
Brookfield Business Partners LP 51.20 -3.21 -5.90
Torex Gold Resources Inc 13.48 -0.73 -5.14
Canada's main stock index fell,
mirroring losses in global equities as
tensions between the United States
and Iran kept investors on the
sidelines.
The Toronto Stock Exchange's S&P/
TSX composite index was up 0.3%, at
16,525.43.
The U.S. dollar was up 0.14% against
its Canadian counterpart at
C$1.3208.
No major events are scheduled.
Canada's Prime Minister Justin Trudeau speaks as Canada's Foreign Minister Chrystia Freeland listens during a news conference at the Canadian Embassy, in Washington, June 20.
REUTERS/Al Drago
REUTERS/Mark Blinch
9
WEALTH NEWS FED POLICY
Fed officials face weak inflation, but split over what it means
U.S. Federal Reserve officials were divided over how seriously to treat a slide in inflation, with one top policymaker saying the
Fed was "close" to its inflation target and three others warning the weak price increases posed major risks the Fed may need
to attack with lower interest rates.
TRADE MEASURES
U.S. bars China supercomputer firms, institute from buying American parts
The U.S. Commerce Department said it was adding several Chinese companies and a government-owned institute involved in
supercomputing with military applications to its national security "entity list" that bars them from buying U.S. parts and
components without government approval.
Wall STREET WEEK AHEAD
Investors eye G20 with hopes for U.S.-China trade détente
All eyes will be on U.S. President Donald Trump and China's President Xi Jinping next week as investors are desperate for
any signs of a thaw in U.S.-China relations even if it shifts expectations for much awaited Federal Reserve interest rate cuts.
DATA MINING
Dollars in the detail; banks pan for gold in 'data lakes'
From sending special offers on restaurants to burger-loving current account holders to selling anonymised credit card records,
banks are racing to monetize the huge troves of data they hold.
FINANCIAL REGULATION
U.S. markets regulators reach deal on Dodd-Frank swaps capital rules
U.S. markets regulators unveiled an agreement on how much capital and margin firms must hold when trading swaps based
on securities, finalizing a key piece of the 2010 Dodd-Frank law introduced following the 2007-09 financial crisis.
RULES FOR CRYPTOCURRENCY
Global money-laundering watchdog launches crackdown on cryptocurrencies
Cryptocurrency firms will be subjected to rules to prevent the abuse of digital coins such as bitcoin for money laundering, a
global watchdog said, the first worldwide regulatory attempt to constrain the rapidly growing sector.
ECONOMIC DATA
Soft U.S. factory activity darkens economic outlook
U.S. manufacturing activity barely grew in early June and
the service sector cooled, signs that President Donald
Trump's trade war with China could be weighing on the
economy. Other economic data released showed a rise in
home resales during May, suggesting the Federal
Reserve was seeing dividends from its efforts to avert a
recession by keeping interest rates low. While many
indicators still point to a healthy economy, Fed
policymakers are increasingly concerned that the 10-year
economic expansion could be in danger.
Data firm IHS Markit said its U.S. manufacturing
purchasing managers index (PMI) declined to a reading of
50.1 in early June, the lowest level since September
2009. "It is likely that the news on trade policy has
weighed on business sentiment and activity," Daniel
Silver, an economist at JPMorgan, said in a note to
clients. Resales of U.S. homes rose 2.5% in May to a
seasonally adjusted annual rate of 5.34 million units, the
National Association of Realtors reported. Click on the chart for a full sized and detailed graphic.
ON THE RADAR
Events ET Poll Prior
Tue: Build permits number for May 0800 -- 1.294 mln
Build permits R change mm for May 0800 -- 0.3%
Monthly home price mm for Apr 0900 -- 0.1%
Monthly home price yy for Apr 0900 -- 4.9%
Monthly Home Price Index for Apr 0900 -- 273.4
Caseshiller 20 mm SA for Apr 0900 0.2% 0.1%
Consumer Confidence for Jun 1000 131.0 134.1
New home sales-units for May 1000 0.680 mln 0.673 mln
New home sales change mm for May 1000 2.2% -6.9%
Rich Fed Composite Index for Jun 1000 -- 5
Rich Fed, Services Index for Jun 1000 -- 1
Rich Fed Manufacturing Shipments for Jun 1000 -- 2
Texas Service Sector Outlook for Jun 1030 -- -0.3
Dallas Fed Services Revenues for Jun 1030 -- 2.7
Wed: Durable goods for May 0830 0.0% -2.1%
Durables ex-transport for May 0830 0.1% 0.0%
Durables ex-defense mm for May 0830 -- -2.5%
Nondefense cap ex-air for May 0830 0.1% -1%
Advance goods trade balance for May 0830 -- -70.92 bln
Wholesale inventories advance for May 0830 -- 0.8%
Retail inventories ex-auto advance for May 0830 -- 0.4%
Thu: Corporate profits revised for Q1 0830 -- -3.5%
GDP final for Q1 0830 3.2% 3.1%
GDP sales final for Q1 0830 -- 2.5%
GDP cons spending final for Q1 0830 -- 1.3%
GDP deflator final for Q1 0830 0.8% 0.5%
Core PCE prices final for Q1 0830 1.0% 1%
PCE prices final for Q1 0830 -- 0.4%
Initial jobless claims 0830 220,000 216,000
Jobless claims 4-week average 0830 -- 218,750
Continued jobless claims 0830 1.664 mln 1.662 mln
Pending Homes Index for May 1000 -- 104.3
Pending sales change mm for May 1000 1% -1.5%
Fri: Dallas fed PCE for May : -- 2.9%
Personal income mm for May 0830 0.3% 0.5%
Personal consumption real mm for May 0830 -- 0%
Consumption, adjusted mm for May 0830 0.4% 0.3%
Core PCE price index mm for May 0830 0.2% 0.2%
Core PCE price index yy for May 0830 1.6% 1.6%
PCE price index mm for May 0830 -- 0.3%
PCE price index yy for May 0830 -- 1.5%
Chicago PMI for Jun 0945 53.8 54.2
U Mich Sentiment Final for Jun 1000 98.0 97.9
U Mich Expectations Final for Jun 1000 -89.4 88.6
U Mich 1 year inflation final for Jun 1000 -- 2.6%
U Mich 5-year inflation final for Jun 1000 -- 2.2%
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The Day Ahead - North America is compiled by Nachiket Tekawade and Priyanka Das in Bengaluru.
For questions or comments about this report, email us at: [email protected].
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Internally displaced Afghan girl carries a child near their shelter at a refugee camp on the outskirts of Kabul, Afghanistan, June 20. REUTERS/Omar Sobhani